China’s rebound in international travel post-COVID-19 is facing significant hurdles, primarily driven by rising costs and visa complexities, leading many to opt for local and short-haul destinations instead.
Despite China easing its strict COVID-19 policies and reopening borders 18 months ago, the recovery in overseas travel has been slower than anticipated. This delay, impacting the world’s largest spenders on international tourism and airlines, is adversely affecting global travel-related businesses, hotels, and retailers.
Last year, Chinese travelers made 87 million trips abroad, marking a 40% decrease from pre-pandemic levels in 2019. The spending by Chinese tourists also saw a notable decline of 24% compared to 2019 figures, contrasting with a 14% increase in spending by U.S. travelers, according to U.N. Tourism data. This setback is particularly challenging for countries like France, Australia, and the U.S., which were prime destinations for Chinese tourists before the pandemic.
Liu Simin from the China Society for Futures Studies anticipates that China’s international travel may not fully recover to pre-pandemic levels for another five years, attributing this sluggish recovery to the depreciation of the Chinese yuan against the dollar and inflation in the U.S. and Europe.
Consultancy firm Oliver Wyman has revised its forecast for China’s international travel recovery to late 2025, highlighting a continued cautious consumer outlook amid economic uncertainties.
While international travel is gradually rebounding, with Chinese travelers once again leading global spending on tourism, domestic trips have surged significantly. During the recent May Day holiday, domestic trips in China reached a record high of 295 million, up more than 20% from 2019, underscoring a clear preference for local destinations.
The preference for domestic travel is further emphasized by challenges such as long visa processing times and inconvenience for European destinations. Many first-time travelers who ventured abroad in 2023 have opted to stay domestic this year due to these hurdles.
For instance, Beijing resident Wang Shu had to cancel his trip to France due to visa appointment delays and instead enjoyed a vacation in Changsha, spending considerably less than planned.
Despite these challenges, countries offering visa-free access, such as Singapore, Malaysia, Thailand, and the UAE, have witnessed a surge in Chinese visitors. Japan, benefiting from a favorable exchange rate, has also seen a notable increase in Chinese tourists.
In contrast, destinations requiring visas have experienced prolonged recovery periods. The capacity on U.S.-China flight routes remains significantly reduced, impacted by ongoing political tensions between the two nations.
Overall, while international travel from China is slowly picking up, the landscape is evolving towards a preference for accessible and cost-effective travel options, reshaping the global tourism market dynamics.
